Australia Economy Profile - Doing Business 2019
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Doing Business 2019 Australia
Economy Profile
Australia
Page 1
Doing Business 2019 Australia
Economy Profile of Australia
Doing Business 2019 Indicators
(in order of appearance in the document)
Starting a business Procedures, time, cost and paid-in minimum capital to start a limited liability company
Dealing with construction permits Procedures, time and cost to complete all formalities to build a warehouse and the quality
control and safety mechanisms in the construction permitting system
Getting electricity Procedures, time and cost to get connected to the electrical grid, and the reliability of the
electricity supply and the transparency of tariffs
Registering property Procedures, time and cost to transfer a property and the quality of the land administration
system
Getting credit Movable collateral laws and credit information systems
Protecting minority investors Minority shareholders’ rights in related-party transactions and in corporate governance
Paying taxes Payments, time, total tax and contribution rate for a firm to comply with all tax regulations as
well as post-filing processes
Trading across borders Time and cost to export the product of comparative advantage and import auto parts
Enforcing contracts Time and cost to resolve a commercial dispute and the quality of judicial processes
Resolving insolvency Time, cost, outcome and recovery rate for a commercial insolvency and the strength of the
legal framework for insolvency
Labor market regulation Flexibility in employment regulation and aspects of job quality
Page 2Doing Business 2019 Australia
About Doing Business
The Doing Business project provides objective measures of business regulations and their enforcement across 190 economies and selected
cities at the subnational and regional level.
The Doing Business project, launched in 2002, looks at domestic small and medium-size companies and measures the regulations applying
to them through their life cycle.
Doing Business captures several important dimensions of the regulatory environment as it applies to local firms. It provides quantitative
indicators on regulation for starting a business, dealing with construction permits, getting electricity, registering property, getting credit,
protecting minority investors, paying taxes, trading across borders, enforcing contracts and resolving insolvency. Doing Business also
measures features of labor market regulation. Although Doing Business does not present rankings of economies on the labor market
regulation indicators or include the topic in the aggregate ease of doing business score or ranking on the ease of doing business, it does
present the data for these indicators.
By gathering and analyzing comprehensive quantitative data to compare business regulation environments across economies and over time,
Doing Business encourages economies to compete towards more efficient regulation; offers measurable benchmarks for reform; and serves
as a resource for academics, journalists, private sector researchers and others interested in the business climate of each economy.
In addition, Doing Business offers detailed subnational reports, which exhaustively cover business regulation and reform in different cities and
regions within a nation. These reports provide data on the ease of doing business, rank each location, and recommend reforms to improve
performance in each of the indicator areas. Selected cities can compare their business regulations with other cities in the economy or region
and with the 190 economies that Doing Business has ranked.
The first Doing Business report, published in 2003, covered 5 indicator sets and 133 economies. This year’s report covers 11 indicator sets
and 190 economies. Most indicator sets refer to a case scenario in the largest business city of each economy, except for 11 economies that
have a population of more than 100 million as of 2013 (Bangladesh, Brazil, China, India, Indonesia, Japan, Mexico, Nigeria, Pakistan, the
Russian Federation and the United States) where Doing Business also collected data for the second largest business city. The data for these
11 economies are a population-weighted average for the 2 largest business cities. The project has benefited from feedback from
governments, academics, practitioners and reviewers. The initial goal remains: to provide an objective basis for understanding and improving
the regulatory environment for business around the world.
More about Doing Business (PDF, 5MB)
Page 3Doing Business 2019 Australia
Ease of Doing Business in
Region OECD high income DB 2019 Rank
190 1
Australia
Income Category High income 18
DB 2019 Ease of doing business score
Population 24,598,933
0 100
City Covered Sydney 80.13
DB 2019 Ease of Doing Business Score
0 100
86.59: New Zealand (Rank: 1)
82.75: United States (Rank: 8)
80.13: Australia (Rank: 18)
79.26: Canada (Rank: 22)
77.80: Regional Average (OECD high income)
75.65: Japan (Rank: 39)
Note: The ease of doing business score captures the gap of each economy from the best regulatory performance observed on each of the indicators across all economies
in the Doing Business sample since 2005. An economy’s ease of doing business score is reflected on a scale from 0 to 100, where 0 represents the lowest and 100
represents the best performance. The ease of doing business ranking ranges from 1 to 190.
Rankings on Doing Business topics - Australia
7 8 5
1 9
20
26
28
52 50
55 64
82
Rank
103
109
136
163
190
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Ease of Doing Business Score on Doing Business topics - Australia
100 96.47
90.00
84.59 85.64
82.31
79.00 78.87
80 74.09
70.30
60.00
Score
60
40
20
0
Starting Dealing Getting Registering Getting Protecting Paying Trading Enforcing Resolving
a with Electricity Property Credit Minority Taxes across Contracts Insolvency
Business Construction Investors Borders
Permits
Page 4Doing Business 2019 Australia
Starting a Business
This topic measures the number of procedures, time, cost and paid-in minimum capital requirement for a small- to medium-sized limited
liability company to start up and formally operate in each economy’s largest business city.
To make the data comparable across 190 economies, Doing Business uses a standardized business that is 100% domestically owned, has
start-up capital equivalent to 10 times the income per capita, engages in general industrial or commercial activities and employs between 10
and 50 people one month after the commencement of operations, all of whom are domestic nationals. Starting a Business considers two
types of local limited liability companies that are identical in all aspects, except that one company is owned by 5 married women and the
other by 5 married men. The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a
business. These scores are the simple average of the scores for each of the component indicators.
The most recent round of data collection for the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally start and formally operate To make the data comparable across economies, several assumptions about the
a company (number) business and the procedures are used. It is assumed that any required information is
readily available and that the entrepreneur will pay no bribes.
• Preregistration (for example, name verification or
reservation, notarization) The business:
• Registration in the economy’s largest business - Is a limited liability company (or its legal equivalent). If there is more than one type
city
of limited liability company in the economy, the most common among domestic firms
• Postregistration (for example, social security is chosen. Information on the most common form is obtained from incorporation
registration, company seal) lawyers or the statistical office.
- Operates in the economy’s largest business city. For 11 economies the data are
• Obtaining approval from spouse to start a also collected for the second largest business city.
business or to leave the home to register the
- The entire office space is approximately 929 square meters (10,000 square feet).
company
- Is 100% domestically owned and has five owners, none of whom is a legal entity;
• Obtaining any gender specific document for has a start-up capital of 10 times income per capita and has a turnover of at least
company registration and operation or national 100 times income per capita.
identification card - Performs general industrial or commercial activities, such as the production or sale
of goods or services to the public. The business does not perform foreign trade
Time required to complete each procedure
activities and does not handle products subject to a special tax regime, for example,
(calendar days)
liquor or tobacco. It does not use heavily polluting production processes.
• Does not include time spent gathering - Leases the commercial plant or offices and is not a proprietor of real estate and the
information amount of the annual lease for the office space is equivalent to the income per
capita.
• Each procedure starts on a separate day (2 - Does not qualify for investment incentives or any special benefits.
procedures cannot start on the same day)
- Has at least 10 and up to 50 employees one month after the commencement of
• Procedures fully completed online are recorded operations, all of whom are domestic nationals.
as ½ day - Has a company deed that is 10 pages long.
• Procedure is considered completed once final The owners:
document is received
- Have reached the legal age of majority. If there is no legal age of majority, they are
• No prior contact with officials assumed to be 30 years old.
Cost required to complete each procedure (% of - Are sane, competent, in good health and have no criminal record.
income per capita) - Are married and the marriage is monogamous and registered with the authorities.
- Where the answer differs according to the legal system applicable to the woman or
• Official costs only, no bribes man in question (as may be the case in economies where there is legal plurality), the
• No professional fees unless services required by answer used will be the one that applies to the majority of the population.
law or commonly used in practice
Paid-in minimum capital (% of income per
capita)
• Funds deposited in a bank or with third party
before registration or up to 3 months after
incorporation
Page 5Doing Business 2019 Australia
Starting a Business - Australia
Standardized Company
Legal form Proprietary Company (Pty Ltd)
Paid-in minimum capital requirement AUD 0
City Covered Sydney
Indicator Australia OECD high Best Regulatory
income Performance
Procedure – Men (number) 3 4.9 1 (New Zealand)
Time – Men (days) 2.5 9.3 0.5 (New Zealand)
Cost – Men (% of income per capita) 0.7 3.1 0.0 (Slovenia)
Procedure – Women (number) 3 4.9 1 (New Zealand)
Time – Women (days) 2.5 9.3 0.5 (New Zealand)
Cost – Women (% of income per capita) 0.7 3.1 0.0 (Slovenia)
Paid-in min. capital (% of income per capita) 0.0 8.6 0.0 (117 Economies)
Figure – Starting a Business in Australia and comparator economies – Ranking and Score
DB 2019 Starting a Business Score
0 100
99.98: New Zealand (Rank: 1)
98.23: Canada (Rank: 3)
96.47: Australia (Rank: 7)
91.23: United States (Rank: 53)
91.19: Regional Average (OECD high income)
86.10: Japan (Rank: 93)
Note: The ranking of economies on the ease of starting a business is determined by sorting their scores for starting a business. These scores
are the simple average of the scores for each of the component indicators.
Page 6Doing Business 2019 Australia
Figure – Starting a Business in Australia – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
2.5 0.8
0.7
Cost (% of income per capita)
2
0.6
Time (days)
0.5
1.5
0.4
1
0.3
0.2
0.5
0.1
0 0
1 2 3
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 7Doing Business 2019 Australia
Details – Starting a Business in Australia – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Complete and lodge ASIC Form 201 “Application for Registration as an 1 day AUD 479
Australian Company"; Obtain a certificate of incorporation and an
Australian company number (ACN)
Agency : Australian Securities and Investments Commission (ASIC)
To register a Pty Ltd company, the applicant must complete and submit an ASIC
Form 201 (""Application for Registration as an Australian Company"") and pay
the prescribed fee.
Any person to be appointed as a director or secretary of the company must have
consented in writing to that appointment. Similarly, each shareholder of the
company must have consented to become a shareholder.
At least 1 director (and, if the company has appointed secretaries, at least 1
secretary) must ordinarily reside in Australia. The registered office of the
company must be an address in Australia.
The company may adopt its own constitution or rely upon the Replaceable Rules
in the Corporations Act 2001.
Prior to lodging the application for registration, the applicant should confirm the
availability of the proposed company name. If no name is specified, the company
will simply be referred to by its Australian Company Number (""ACN"").
Upon incorporation, ASIC will issue to the company a certificate of incorporation,
which evidenced that the company has been incorporated on and from the date
of issue.
2 Register for ABN with the Australian Taxation Office (ATO) Less than one day no charge
Agency : Australian Taxation Office (online procedure)
This procedure is required under the Income Tax Assessment Act 1936 and the
New Tax System (Goods and Services Tax) Act of 1999.
Depending on the company's circumstances and location, it must comply with
different taxation requirements:
- If the annual company turnover is AUD$75,000 or more, the company must
register for Goods and Services Tax (GST) by obtaining an 11-digit Australian
Business Number (ABN). The annual company turnover represents its gross
business income (not its profit). Companies with lower annual turnover may also
choose to register for the Goods and Services Tax.
- The application to ABN can be submitted electronically at the Business Entry
Point, www.abr.gov.au. If the electronic submission is successful, the applicant
will be provided with an ABN at the end of the Internet session. Alternatively, a
hard copy application may be submitted to the ATO. The ATO will then mail the
ABN within 28 days of receiving the application. A public officer must be
appointed upon registration, to deal with the company's tax affairs.
-The company must deduct taxes from employee pay, provide payment
summaries, contribute to employee superannuation and report and issue
payments to the ATO. Companies may also register for Pay As You Go (PAYG)
at www.abr.gov.au. Otherwise, they may register with the ATO by postal mail or
phone or through a tax agent. State and territory taxes (e.g., stamp duty, payroll
tax, and land tax) may also be imposed, with requirements differing according to
company location.
- Companies with annual turnover of AUD$75,000 or more must register for an
ABN. Failure to do so will result in GST being levied on all company sales since
the required date of registration even if the sale price of any goods or services
has not been grossed up to include the tax. Furthermore, the company may incur
penalties and interest charges for any overdue payments.
- Further information in connection with ABN, GST and PAYG registration may
be found on the ATO website (www.ato.gov.au).
3 Sign up for Worker Compensation Insurance at an insurance agency 1 day no charge
Agency : Workers Compensation Insurance
The Workers Compensation Act of 1987 and the Workplace Injury Management
and Workers Compensation Act of 1998 state that the worker compensation
insurance is a compulsory requirement for employers in Australia. The premium
rate is based on description of the company’s main business.
Takes place simultaneously with previous procedure.
Page 8Doing Business 2019 Australia
Dealing with Construction Permits
This topic tracks the procedures, time and cost to build a warehouse—including obtaining necessary the licenses and permits, submitting all
required notifications, requesting and receiving all necessary inspections and obtaining utility connections. In addition, the Dealing with
Construction Permits indicator measures the building quality control index, evaluating the quality of building regulations, the strength of
quality control and safety mechanisms, liability and insurance regimes, and professional certification requirements. The most recent round of
data collection was completed in May 2018. See the methodology for more information
What the indicators measure Case study assumptions
Procedures to legally build a warehouse To make the data comparable across economies, several assumptions about the
(number) construction company, the warehouse project and the utility connections are used.
• Submitting all relevant documents and obtaining The construction company (BuildCo):
all necessary clearances, licenses, permits and
certificates - Is a limited liability company (or its legal equivalent) and operates in the economy’s
largest business city. For 11 economies the data are also collected for the second
• Submitting all required notifications and receiving largest business city.
all necessary inspections
- Is 100% domestically and privately owned; has five owners, none of whom is a
• Obtaining utility connections for water and legal entity. Has a licensed architect and a licensed engineer, both registered with
sewerage the local association of architects or engineers. BuildCo is not assumed to have any
other employees who are technical or licensed experts, such as geological or
• Registering and selling the warehouse after its
topographical experts.
completion
- Owns the land on which the warehouse will be built and will sell the warehouse
Time required to complete each procedure upon its completion.
(calendar days)
The warehouse:
• Does not include time spent gathering
- Will be used for general storage activities, such as storage of books or stationery.
information
- Will have two stories, both above ground, with a total constructed area of
• Each procedure starts on a separate day— approximately 1,300.6 square meters (14,000 square feet). Each floor will be 3
though procedures that can be fully completed meters (9 feet, 10 inches) high and will be located on a land plot of approximately
online are an exception to this rule 929 square meters (10,000 square feet) that is 100% owned by BuildCo, and the
• Procedure is considered completed once final warehouse is valued at 50 times income per capita.
document is received - Will have complete architectural and technical plans prepared by a licensed
architect. If preparation of the plans requires such steps as obtaining further
• No prior contact with officials documentation or getting prior approvals from external agencies, these are counted
as procedures.
Cost required to complete each procedure (% of
- Will take 30 weeks to construct (excluding all delays due to administrative and
income per capita)
regulatory requirements).
• Official costs only, no bribes
The water and sewerage connections:
Building quality control index (0-15)
- Will be 150 meters (492 feet) from the existing water source and sewer tap. If there
• Quality of building regulations (0-2) is no water delivery infrastructure in the economy, a borehole will be dug. If there is
no sewerage infrastructure, a septic tank in the smallest size available will be
• Quality control before construction (0-1)
installed or built.
• Quality control during construction (0-3) - Will have an average water use of 662 liters (175 gallons) a day and an average
• Quality control after construction (0-3) wastewater flow of 568 liters (150 gallons) a day. Will have a peak water use of
1,325 liters (350 gallons) a day and a peak wastewater flow of 1,136 liters (300
• Liability and insurance regimes (0-2) gallons) a day.
• Professional certifications (0-4) - Will have a constant level of water demand and wastewater flow throughout the
year; will be 1 inch in diameter for the water connection and 4 inches in diameter for
the sewerage connection.
Page 9Doing Business 2019 Australia
Dealing with Construction Permits - Australia
Standardized Warehouse
Estimated value of warehouse AUD 3,470,682.70
City Covered Sydney
Indicator Australia OECD high Best Regulatory
income Performance
Procedures (number) 11 12.7 None in 2017/18
Time (days) 121 153.1 None in 2017/18
Cost (% of warehouse value) 0.7 1.5 None in 2017/18
Building quality control index (0-15) 14.0 11.5 15.0 (3 Economies)
Figure – Dealing with Construction Permits in Australia and comparator economies – Ranking and Score
DB 2019 Dealing with Construction Permits Score
0 100
86.40: New Zealand (Rank: 6)
84.59: Australia (Rank: 9)
77.88: United States (Rank: 26)
75.41: Regional Average (OECD high income)
74.95: Japan (Rank: 44)
72.98: Canada (Rank: 63)
Note: The ranking of economies on the ease of dealing with construction permits is determined by sorting their scores for dealing with
construction permits. These scores are the simple average of the scores for each of the component indicators.
Figure – Dealing with Construction Permits in Australia – Procedure, Time and Cost
Time (days) Cost (% of warehouse value)
120 0.4
0.35
Cost (% of warehouse value)
100
0.3
80
Time (days)
0.25
60 0.2
0.15
40
0.1
20
0.05
0 0
1 *2 3 4 5 6 7 8 9 10 11
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 10Doing Business 2019 Australia
Figure – Dealing with Construction Permits in Australia and comparator economies – Measure of Quality
15.0
15 14.0 14.0
11.0 11.2 11.5
Index score
10
5
0
Australia Canada Japan New Zealand United States OECD high income
Details – Dealing with Construction Permits in Australia – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Obtain a Site Survey/Analysis Plan 21 days AUD 4,000
Agency : Private surveyor
One of the mandatory requirement to obtain a building permit is to submit a Site
Survey/Analysis Plan .
2 Verify if a development application is required 1 day no charge
Agency : Local Council
It is the responsibility of the applicant to contact a planner at the nearest Council
Location before preparing a Development Application (DA), to check:
* whether the proposed development is permissible;
* whether a DA is required; and
* how the City's planning instruments - plans, codes and policies - affect the
proposed development.
BuildCo should ensure that the relevant planning controls have been identified
and satisfied.
There are a range of planning instruments that apply to various types of
development and locations within Sydney.
Most environmental and planning law in Australia varies from one Australian
state to another. In Sydney, in the state of New South Wales, development will
generally be assessed under one of the regimes in the Environmental Planning
and Assessment Act 1979 (Planning Act).
The warehouse to be constructed by BuildCo is most likely to fall under Part 4 of
the Planning Act and will most likely require development consent from the
relevant local council. The Planning Act provides that, for certain types of
development, the concurrence of an authority other than the consent authority
must be obtained. The conditions for approval of development assessed under
Part 4 may also require the developer to obtain further certificates or approvals.
These will add cost and time.
The council's local environment plan (LEP) usually identifies whether
development consent is required. The LEP categorizes development as requiring
consent, not requiring consent, or prohibited. In most cases, the zoning of the
site determines the types of development permitted on the land. Note that the
construction of a warehouse is a type of development that almost always
requires consent. If the development requires development consent, the local
council will usually be the consent authority. However, in some cases, another
authority (such as a State minister) may be the consent authority.
Page 11Doing Business 2019 Australia
3 File development application with consent authority 49 days AUD 6,708
Agency : Local Council
It is a legal requirement to submit digital copies of plans and the following
supporting documentation
- A4 plan for notification purposes (3 copies)
- Survey plan (7 copies + 3 A4 copies)
- Site plan (7 copies + 3 A4 copies)
- Floor plan (existing and proposed), elevation plan, section plan, shadow
diagrams, subdivision plan, landscaping plan (7 copies + 3 A4 copies each)
- Model
- Computer model
- Efficient use of resources commitment table (7 copies)
- green star rating
- Basix certiciate (2 copies)
- Design excellence map
- Exceptions to development standards (if applicable - 7 copies each)
- Statement of environmental effects (7 copies including 1 unbound copy)
- Erosion and sediment control plan (7 copies)
- Stormwater managemenet plan (7 copies)
- Waste management plan (7 copies including 1 unbound copy),
If the assessment is satisfactory, the consent authority will grant BuildCo
development consent, which may be subject to conditions. The Development
Application will be advertised for approximately 21 days to give the surrounding
neighbors the opportunity to contest the planned development in that area. Once
the advertising period is over, it will typically take 6 weeks for the development
certificate to be issued.
4 Apply for a construction certificate 21 days AUD 11,716
Agency : Sydney City Council
After a Development Consent has been issued by the Local Council and before
any building work is carried out, the owner must apply for and obtain a
Construction Certificate. This certificate states that building work may commence
on an approved development, and complies with the terms of the Development
Consent and the Building Code of Australia. Construction Certificates are either
issued by Council, or independent accredited certifiers (PCA - Principle Certifying
Authorities). A Construction Certificate cannot be issued without obtaining prior
development consent for that development.
Items required include:
- Development consent compliance statement (5 copies)
- Plans (5 copies)
- Colored plans (5 copies)
- Survey plans (5 copies)
- Site plan (5 copies)
- Floor plan (5 copies)
- Elevation plan (5 copies)
- Section plan (5 copies)
- Specifications (2 copies)
- Fire safety measures schedule (5 copies)
- Home Building Act requirements
The PCA will also provide a list of mandatory inspections that need to be carried.
5 Apply for approval of building/development plans by Sydney Water Quick 1 day AUD 66
Check Agent
Agency : Sydney Water
Before any construction work can be done, BuildCo must request connection and
building plan approvals, service plans and diagrams online using Sydney Water
Tap In website or by visiting the Sydney Water Quick Check Agent to verify that
the proposed building work will not affect a Sydney Water asset (water supply
pipe and/or drainage pipe).
The documents that must be provided are:
• A full set of building plans
• A site plan to a recognized scale (e.g. 1:500) that shows the full site and the
relationship of the proposed building works to the full site (the location on the lot
where the building works will take place must be clearly identified) or submit
dimensions using the online tool of the Sydney Water Tap In website
6 Notify Hill Shire City Council of Commencement of work and appoint Hill 1 day no charge
Shire City Council as PCA
Agency : Hill Shire City Council
The builder will submit a “Notice of Commencement of Building or Subdivision
Work” form and Appointment of Council as Principal Certifying Authority under
Sections 81A(2)(b)(i),(c), or (4)(b)(i),(c), 86(1)and (2) and 109E of the
Environmental Planning and Assessment Act 1979.
This form is submitted only when the City of Sydney is retained as the Principal
Certifying Authority (PCA).
Page 12Doing Business 2019 Australia
7 Receive the commencement of building work inspection 1 day AUD 270
Agency : Hill Shire City Council
Once a PCA is appointed, it is his responsibility to provide to the applicant a list
of the mandatory critical stage inspections (in accordance to Clause 162A of the
Environmental Planning and Assessment Regulation 2000) and any other
inspections (determined by the PCA) that will be required during construction of
the building. The builder needs to be aware of these inspections as they need to
be carried out at the appropriate time. It is the responsibility of the builder to
contact the PCA at least 48 hours before an inspection is required.
Inspections during construction ensure that the construction is consistent with
what has been approved in the development consent and construction certificate,
and that the building will meet acceptable standards of health, safety and
amenity.
Mandatory critical stage inspections are set according to the building class. For
the case study of Doing Business, the warehouse is a class 7 building.
In the case of a class 5, 6, 7, 8 or 9 building, the building work on the
development site must be inspected:
• At the commencement of building work
• Prior to covering any storm water drainage connections
• After the building work has been completed and prior to any occupation
certificate can be issued in relation to the building
The cost of inspection when Sydney City Council is the PCA is AUD 309.00 per
inspection including 10% GST. However, Doing Business does not include GST
in its calculation.
8 Receive inspection prior to covering any stormwater drainage connections 1 day AUD 270
Agency : Hill Shire City Council
A second mandatory inspection prior to covering any storm water drainage
connections is conducted by the PCA to ensure compliance with the Construction
Certificate.
9 Request and receive connection to water and sewage services 10 days AUD 1,347
Agency : Sydney Water
To receive a connection to water and sewage services, BuildCo must first select
a water-servicing coordinator. The coordinator requests a Section 73 Compliance
Certificate (for water and sewerage infrastructure) from Sydney Water on
BuildCo’s behalf. Sydney Water issues a notice of requirements to the
coordinator within 10 days of application receipt (or longer if the development is
complex). The notice specifies charges to be paid and the project to be built. If
construction is required, certification will depend on the time required for the
project to be built and taken over by Sydney Water. BuildCo pays the fees, builds
the project, and receives the certificate.
Fee schedule for water and sewage connection:
• Water (including works): Up to AUD 1215.00
• Sewage (assuming that infrastructure exists): AUD 132.00
10 Request the occupation certificate 1 day no charge
Agency : Hill Shire City Council
The authority that has approved the development may monitor the finished
development to ensure compliance with laws and local planning policies. If the
development does not comply with the development consent, the applicant can
be fined (with a penalty notice), ordered to make changes to the development, or
taken to the Land and Environment Court of New South Wales. The court may
issue orders to remedy or restrain breaches of the development consent (e.g.
orders to carry out works, cease certain uses of the premises, or remove the
development). In addition, breaches of planning laws may be criminal offences.
New South Wales planning legislation allows any person to bring an action to
remedy or restrain a breach of development consent. Thus, in theory, any person
may commence proceedings to enforce compliance with the law (a) if a relevant
approval (such as a development consent or construction certificate) has not
been obtained where required; or (b) if there has been non-compliance with the
conditions of a relevant approval.
Page 13Doing Business 2019 Australia
11 Receive final inspection by PCA and obtain the final occupation certificate 15 days AUD 535
(OC)
Agency : Hill Shire City Council
An occupation certificate is issued by the appointed Principal Certifying Authority
(PCA) under the Environmental Planning and Assessment Act 1979 allowing a
building to be used and occupied.
This certificate verifies that the PCA is satisfied that the building is suitable to be
occupied and used according to the requirements of the Building Code of
Australia (BCA). That Code sets required standards for the design and
construction of various classes of building to protect health, safety and amenity.
There are two types of occupation certificates:
• A final occupation certificate allows commencement of either the occupation or
use of a new building (including alterations or extensions), or the new use of an
existing building resulting from a change of its use
• An interim occupation certificate allows the commencement of either the
occupation or use of partially completed building, or of a new use of part of an
existing building resulting from a change of use for the building
An occupation certificate is required for any new building work or change of use
of a building that has a development consent or a complying development
certificate under the EP&A Act.
Takes place simultaneously with previous procedure.
Page 14Doing Business 2019 Australia
Details – Dealing with Construction Permits in Australia – Measure of Quality
Answer Score
Building quality control index (0-15) 14.0
Quality of building regulations index (0-2) 2.0
How accessible are building laws and regulations in your economy? (0-1) Available online; 1.0
Free of charge.
Which requirements for obtaining a building permit are clearly specified in the building List of required 1.0
regulations or on any accessible website, brochure or pamphlet? (0-1) documents; Fees
to be paid;
Required
preapprovals.
Quality control before construction index (0-1) 1.0
Which third-party entities are required by law to verify that the building plans are in Licensed 1.0
compliance with existing building regulations? (0-1) architect;
Licensed
engineer; Private
firm.
Quality control during construction index (0-3) 3.0
What types of inspections (if any) are required by law to be carried out during construction? Inspections by 2.0
(0-2) external engineer
or firm;
Inspections at
various phases;
Risk-based
inspections.
Do legally mandated inspections occur in practice during construction? (0-1) Mandatory 1.0
inspections are
always done in
practice.
Quality control after construction index (0-3) 3.0
Is there a final inspection required by law to verify that the building was built in accordance Yes, external 2.0
with the approved plans and regulations? (0-2) engineer submits
report for final
inspection.
Do legally mandated final inspections occur in practice? (0-1) Final inspection 1.0
always occurs in
practice.
Liability and insurance regimes index (0-2) 1.0
Which parties (if any) are held liable by law for structural flaws or problems in the building Architect or 1.0
once it is in use (Latent Defect Liability or Decennial Liability)? (0-1) engineer;
Construction
company.
Which parties (if any) are required by law to obtain an insurance policy to cover possible No party is 0.0
structural flaws or problems in the building once it is in use (Latent Defect Liability Insurance required by law
or Decennial Insurance)? (0-1) to obtain
insurance .
Professional certifications index (0-4) 4.0
What are the qualification requirements for the professional responsible for verifying that the Minimum number 2.0
architectural plans or drawings are in compliance with existing building regulations? (0-2) of years of
experience;
University degree
in architecture or
engineering;
Being a
registered
architect or
engineer;
Passing a
certification
exam.
Page 15Doing Business 2019 Australia
What are the qualification requirements for the professional who supervises the construction Minimum number 2.0
on the ground? (0-2) of years of
experience;
University degree
in engineering,
construction or
construction
management;
Being a
registered
architect or
engineer.
Page 16Doing Business 2019 Australia
Getting Electricity
This topic measures the procedures, time and cost required for a business to obtain a permanent electricity connection for a newly
constructed warehouse. Additionally, the reliability of supply and transparency of tariffs index measures reliability of supply, transparency of
tariffs and the price of electricity. The most recent round of data collection for the project was completed in May 2018. See the methodology
for more information.
What the indicators measure Case study assumptions
Procedures to obtain an electricity connection To make the data comparable across economies, several assumptions about the
(number) warehouse, the electricity connection and the monthly consumption are used.
• Submitting all relevant documents and obtaining The warehouse:
all necessary clearances and permits
- Is owned by a local entrepreneur and is used for storage of goods.
• Completing all required notifications and - Is located in the economy’s largest business city. For 11 economies the data are
receiving all necessary inspections
also collected for the second largest business city.
• Obtaining external installation works and possibly - Is located in an area where similar warehouses are typically located and is in an
purchasing material for these works area with no physical constraints. For example, the property is not near a railway.
- Is a new construction and is being connected to electricity for the first time.
• Concluding any necessary supply contract and - Has two stories with a total surface area of approximately 1,300.6 square meters
obtaining final supply
(14,000 square feet). The plot of land on which it is built is 929 square meters
Time required to complete each procedure (10,000 square feet).
(calendar days)
The electricity connection:
• Is at least 1 calendar day
- Is a permanent one with a three-phase, four-wire Y connection with a subscribed
• Each procedure starts on a separate day capacity of 140-kilo-volt-ampere (kVA) with a power factor of 1, when 1 kVA = 1
kilowatt (kW).
• Does not include time spent gathering
information - Has a length of 150 meters. The connection is to either the low- or medium-voltage
distribution network and is either overhead or underground, whichever is more
• Reflects the time spent in practice, with little common in the area where the warehouse is located and requires works that involve
follow-up and no prior contact with officials the crossing of a 10-meter road (such as by excavation or overhead lines) but are all
carried out on public land. There is no crossing of other owners’ private property
Cost required to complete each procedure (% of
because the warehouse has access to a road.
income per capita)
- Does not require work to install the internal wiring of the warehouse. This has
• Official costs only, no bribes already been completed up to and including the customer’s service panel or
switchboard and the meter base.
• Value added tax excluded
The reliability of supply and transparency of The monthly consumption:
tariffs index (0-8)
- It is assumed that the warehouse operates 30 days a month from 9:00 a.m. to 5:00
• Duration and frequency of power outages (0–3) p.m. (8 hours a day), with equipment utilized at 80% of capacity on average and that
there are no electricity cuts (assumed for simplicity reasons) and the monthly energy
• Tools to monitor power outages (0–1) consumption is 26,880 kilowatt-hours (kWh); hourly consumption is 112 kWh.
• Tools to restore power supply (0–1) - If multiple electricity suppliers exist, the warehouse is served by the cheapest
supplier.
• Regulatory monitoring of utilities’ performance
(0–1) - Tariffs effective in January of the current year are used for calculation of the price of
electricity for the warehouse. Although January has 31 days, for calculation
• Financial deterrents limiting outages (0–1) purposes only 30 days are used.
• Transparency and accessibility of tariffs (0–1)
Price of electricity (cents per kilowatt-hour)*
• Price based on monthly bill for commercial
warehouse in case study
*Note: Doing Business measures the price of
electricity, but it is not included in the ease of doing
business score nor the ranking on the ease of
getting electricity.
Page 17Doing Business 2019 Australia
Getting Electricity - Australia
Standardized Connection
Price of electricity (US cents per kWh) 23.1
Name of utility Ausgrid
City Covered Sydney
Indicator Australia OECD high Best Regulatory
income Performance
Procedures (number) 5 4.5 3 (25 Economies)
Time (days) 75 77.2 18 (3 Economies)
Cost (% of income per capita) 12.5 64.2 0.0 (3 Economies)
Reliability of supply and transparency of tariff index (0-8) 7 7.5 8.0 (27 Economies)
Figure – Getting Electricity in Australia and comparator economies – Ranking and Score
DB 2019 Getting Electricity Score
0 100
89.88: Japan (Rank: 22)
85.47: Regional Average (OECD high income)
83.98: New Zealand (Rank: 45)
82.31: Australia (Rank: 52)
82.15: United States (Rank: 54)
63.78: Canada (Rank: 121)
Note: The ranking of economies on the ease of getting electricity is determined by sorting their scores for getting electricity. These scores are
the simple average of the scores for all the component indicators except the price of electricity.
Page 18Doing Business 2019 Australia
Figure – Getting Electricity in Australia – Procedure, Time and Cost
Time (days) Cost (% of income per capita)
8
70
7
Cost (% of income per capita)
60
6
50
Time (days)
5
40
4
30
3
20 2
10 1
0 0
1 2 3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Figure – Getting Electricity in Australia and comparator economies – Measure of Quality
8
8 7.5
7 7 7.2
7
6
6
Index score
5
4
3
2
1
0
Australia Canada Japan New Zealand United States OECD high income
Page 19Doing Business 2019 Australia
Details – Getting Electricity in Australia – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 Submit application to Ausgrid, receive job number and estimate and make 52 calendar days AUD 275
payment
Agency : Ausgrid
The connection application can be obtained and submitted via website, email or
fax. The majority of interaction by contractors and service providers is
undertaken via email or the website. Premises Connection Requirements are
detailed in the "ES1" document. This document also includes an application for
CT metering for use where required.
There is a range of information required on the connection application form
relating to details of the connection customer, the intended load to be connected,
the intended point of connection and details of the electrical contractor /
customer's representative.
Ausgrid will assess the electrical load to be connected. In this instance, a load
above 100Amps per phase connected directly to the street network, Ausgrid will
issue a "Basic Connection Offer - over 100Amps" (a connection contract) within
10 business days which details the conditions under which Ausgrid will permit the
connection and the range of Ausgrid fees that are likely to apply associated with
making the connection. The connection applicant has 45 business days to accept
the connection offer.
Once the connection offer is accepted (includes acceptance of Ausgrid gees),
Ausgrid will provided a "Job Number" which enables the Accredited Service
Provider (ASP) to obtain an energy meter from Ausgrid. An NMI number
(National Market Identifier) will also be provided for use by the applicant when
entering into a contract with an energy retailer for the supply of electricity. It is not
normally advisable to commence work until the connection offer has been issued
/ accepted and job number / NMI issued.
2 Hire accredited service provider to carry out external works 11 calendar days AUD 5,152.9
Agency : Accredited Service Provider
The customer engages a private Accredited Service Provider (ASP). The ASP
does all the connection works from the network to the point of attachment to the
premises (consumer's terminals), including installing the energy meter. Once
completed, the ASP submits a Notification of Service Work (NOSW) detailing the
connection works undertaken.
3 Submit CT Metering form to utility 1 calendar day AUD 0
Agency : Ausgrid
Service requiring metering of supplies above 100amps needs to submit the CT
Metering Application form prior to energizing any new services.
The form is used to capture data that is unique to the CT installation site such as
• the retailer
• customer’s details
• electrical contractor
• metering provider
• ALL existing metering to be removed
As the information must be confirmed prior to the energisation of the site and
may take up to ten days to process, to avoid delay, it is suggested that the details
in CT Metering Application form be submitted as soon as possible.
Prior submission of a completed CT Metering form is necessary to enable
energisation of the installation.
4 Submit CCEW to Ausgrid so they can undertake an audit inspection of 7 calendar days AUD 0
electrical installation.
Agency : Ausgrid
The Electrical Contractor undertaking the electrical installation work associated
with the premises submits a Certificate of Compliance Electrical Work (CCEW) to
the electricity utility once the work is completed. The utility will undertake an audit
inspection of electrical installation.
5 Obtain meter installation by meter provider and receive electricity flow 4 calendar days AUD 3,221
Agency : Meter provider
The customer requests Ausgrid (or an Accredited Service Provider) to install the
meter. Meter may be installed at the same time than the internal/external
installation inspection (but not necessarily). At the completion of the installation
inspection the service is energized and electricity starts flowing.
Takes place simultaneously with previous procedure.
Page 20Doing Business 2019 Australia
Details – Getting Electricity in Australia – Measure of Quality
Answer
Reliability of supply and transparency of tariff index (0-8) 7
Total duration and frequency of outages per customer a year (0-3) 2
System average interruption duration index (SAIDI) 1.2
System average interruption frequency index (SAIFI) 0.6
What is the minimum outage time (in minutes) that the utility considers for the calculation of SAIDI/SAIFI 1.0
Mechanisms for monitoring outages (0-1) 1
Does the distribution utility use automated tools to monitor outages? Yes
Mechanisms for restoring service (0-1) 1
Does the distribution utility use automated tools to restore service? Yes
Regulatory monitoring (0-1) 1
Does a regulator—that is, an entity separate from the utility—monitor the utility’s performance on reliability of Yes
supply?
Financial deterrents aimed at limiting outages (0-1) 1
Does the utility either pay compensation to customers or face fines by the regulator (or both) if outages Yes
exceed a certain cap?
Communication of tariffs and tariff changes (0-1) 1
Are effective tariffs available online? Yes
Link to the website, if available online https://www.originen
ergy.com.au/content/
dam/origin/business/
Documents/energy-
price-fact-
sheets/nsw/1July201
7/NSW_Electricity_S
mall%20Business_A
usGrid_Standard%2
0Published%20Rate.
PDF
Are customers notified of a change in tariff ahead of the billing cycle? Yes
Note:
If the duration and frequency of outages is 100 or less, the economy is eligible to score on the Reliability of supply and transparency of tariff
index.
If the duration and frequency of outages is not available, or is over 100, the economy is not eligible to score on the index.
If the minimum outage time considered for SAIDI/SAIFI is over 5 minutes, the economy is not eligible to score on the index.
Page 21Doing Business 2019 Australia
Registering Property
This topic examines the steps, time and cost involved in registering property, assuming a standardized case of an entrepreneur who wants to
purchase land and a building that is already registered and free of title dispute. In addition, the topic also measures the quality of the land
administration system in each economy. The quality of land administration index has five dimensions: reliability of infrastructure, transparency
of information, geographic coverage, land dispute resolution, and equal access to property rights. The most recent round of data collection for
the project was completed in May 2018. See the methodology for more information.
What the indicators measure Case study assumptions
Procedures to legally transfer title on To make the data comparable across economies, several assumptions about the
immovable property (number) parties to the transaction, the property and the procedures are used.
• Preregistration procedures (for example, The parties (buyer and seller):
checking for liens, notarizing sales agreement,
paying property transfer taxes) - Are limited liability companies (or the legal equivalent).
- Are located in the periurban area of the economy’s largest business city. For 11
• Registration procedures in the economy's largest economies the data are also collected for the second largest business city.
business city.
- Are 100% domestically and privately owned.
• Postregistration procedures (for example, filling - Have 50 employees each, all of whom are nationals.
title with municipality) - Perform general commercial activities.
Time required to complete each procedure The property (fully owned by the seller):
(calendar days)
- Has a value of 50 times income per capita, which equals the sale price.
• Does not include time spent gathering - Is fully owned by the seller.
information - Has no mortgages attached and has been under the same ownership for the past
10 years.
• Each procedure starts on a separate day -
- Is registered in the land registry or cadastre, or both, and is free of title disputes.
though procedures that can be fully completed
online are an exception to this rule - Is located in a periurban commercial zone, and no rezoning is required.
- Consists of land and a building. The land area is 557.4 square meters (6,000
• Procedure is considered completed once final square feet). A two-story warehouse of 929 square meters (10,000 square feet) is
document is received located on the land. The warehouse is 10 years old, is in good condition, has no
• No prior contact with officials heating system and complies with all safety standards, building codes and legal
requirements. The property, consisting of land and building, will be transferred in its
Cost required to complete each procedure (% of entirety.
property value) - Will not be subject to renovations or additional construction following the purchase.
- Has no trees, natural water sources, natural reserves or historical monuments of
• Official costs only (such as administrative fees, any kind.
duties and taxes).
- Will not be used for special purposes, and no special permits, such as for
• Value Added Tax, Capital Gains Tax and illicit residential use, industrial plants, waste storage or certain types of agricultural
payments are excluded activities, are required.
- Has no occupants, and no other party holds a legal interest in it.
Quality of land administration index (0-30)
• Reliability of infrastructure index (0-8)
• Transparency of information index (0–6)
• Geographic coverage index (0–8)
• Land dispute resolution index (0–8)
• Equal access to property rights index (-2–0)
Page 22Doing Business 2019 Australia
Registering Property - Australia
Indicator Australia OECD high Best Regulatory
income Performance
Procedures (number) 5 4.7 1 (4 Economies)
Time (days) 4.5 20.1 1 (New Zealand)
Cost (% of property value) 5.3 4.2 0.0 (Saudi Arabia)
Quality of the land administration index (0-30) 20.0 23.0 None in 2017/18
Figure – Registering Property in Australia and comparator economies – Ranking and Score
DB 2019 Registering Property Score
0 100
94.89: New Zealand (Rank: 1)
79.31: Canada (Rank: 34)
77.17: Regional Average (OECD high income)
76.87: United States (Rank: 38)
74.21: Japan (Rank: 48)
74.09: Australia (Rank: 50)
Note: The ranking of economies on the ease of registering property is determined by sorting their scores for registering property. These
scores are the simple average of the scores for each of the component indicators.
Figure – Registering Property in Australia – Procedure, Time and Cost
Time (days) Cost (% of property value)
4.5 6
4
5
Cost (% of property value)
3.5
3 4
Time (days)
2.5
3
2
1.5 2
1
1
0.5
0 0
1 *2 *3 4 5
Procedures (number)
* This symbol is shown beside procedure numbers that take place simultaneously with the previous procedure.
Note: Online procedures account for 0.5 days in the total time calculation. For economies that have a different procedure list for men and
women, the graph shows the time for women. For more information on methodology, see the Doing Business website
(http://doingbusiness.org/en/methodology). For details on the procedures reflected here, see the summary below.
Page 23Doing Business 2019 Australia
Figure – Registering Property in Australia and comparator economies – Measure of Quality
30
26.5
24.8
25 23.0
21.5
Index score 20.0
20 17.6
15
10
5
0
Australia Canada Japan New Zealand United States OECD high income
Details – Registering Property in Australia – Procedure, Time and Cost
No. Procedures Time to Complete Associated Costs
1 File for a zoning certificate from the Municipal Council 2 days AUD 53
Agency : Municipal Council (City of Sydney)
The seller is responsible for obtaining a Zoning Certificate from the Municipal
Council. This document must be attached to the Contract for Sale (prescribed
documents). A Building Certificate can also be obtained from the Municipal
Council, but it is not mandatory. Certain municipal councils now process
applications through the internet and deliver Zoning Certificates electronically. In
the case of Sidney, it is possible to request a certificate online at
https://online.cityofsydney.nsw.gov.au/Certificates, and it is possible to receive it
by email.
2 File for a drainage diagram from the local water authority 1 day AUD 27.41
Agency : Local water authority (Sydney Water)
The seller is responsible for obtaining a Drainage Diagram from the water
authority. This document must be attached to the contract for sale (prescribed
documents). This document can be obtained online at
http://www.sydneywater.com.au/tapin/index.htm
3 File for a title search certificate, land tax certificate, deposited plans, Less than one day, AUD 40.7; (AUD
easements and covenants recorded on the title from the Land and Property online 40.7: AUD 12.70 for
Information Department online title search,
Agency : NSW Land Registry Services (Concessionary for Office of the Registrar
land tax certificate,
General)
online plans,
The seller is responsible for obtaining a title search, plans (known as Deposited
Plans), easements and covenants recorded on title from the NSW Land Registry easements and
Services, according to by law, the Conveyancing Act 1919 and the Conveyancing covenants; AUD 28
(Sale of Land) Regulation 2005. These documents must be attached to the sale Broker agent fee.)
contract (prescribed documents); failure to do so may entitle the purchaser to
rescind the contract. If the seller is doing the process online, then the seller must
hire an approved information broker and pay a broker fee.
The NSW Land Registry Services has a network of approved information brokers
that can be used to file a title search certificate, land tax certificate, deposited
plans, easements and covenants recorded on the title. Using an information
broker is the only way a person can complete this process online
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